LONDON, Aug 17 - Gasoline prices dropped by almost
6 percent in Europe on Monday, heading below $650 for the first
time since late July on a sell-off in the futures market and low
exports to the United States. Tight supplies and Nigerian demand had pushed European
gasoline prices to a year high of almost $740 a tonne last week,
but the lack of exports going to the key United States market
have since caused prices to plummet by almost $100. Widespread fears about the strength of consumer demand have
also hit the crude market, with Brent falling below $70 a barrel
on Monday for the first time this month. [O/R] "There's been a bit of a sell-off across the markets today
and gasoline's not been immune," one broker said. "The arbitrage
to the United States is starting to look a bit better though
which should provide some support." While European prices were down almost 6 percent, U.S.
gasoline future prices fell by less than 2 percent.
6 percent in Europe on Monday, heading below $650 for the first
time since late July on a sell-off in the futures market and low
exports to the United States. Tight supplies and Nigerian demand had pushed European
gasoline prices to a year high of almost $740 a tonne last week,
but the lack of exports going to the key United States market
have since caused prices to plummet by almost $100. Widespread fears about the strength of consumer demand have
also hit the crude market, with Brent falling below $70 a barrel
on Monday for the first time this month. [O/R] "There's been a bit of a sell-off across the markets today
and gasoline's not been immune," one broker said. "The arbitrage
to the United States is starting to look a bit better though
which should provide some support." While European prices were down almost 6 percent, U.S.
gasoline future prices fell by less than 2 percent.
